1 brand positioning

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Brand Positioning

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Positioning and Differentiation strategies

Positioning refers to the process of putting the

product in the predetermined orbitAs the competition intensifies & brands proliferate

consumers tend to differentiate between brands intheir own way. Positioning is a conscious attempt on

the part of the marketer to accelerate this naturaltendency and in the process impart a distinct identityto his own brand to make it stand out among thecompetitors.

BrandIdentity

PositioningBrandImage

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Positioning Strategies

Positioning by specific product attribute

Highlight certain specific product features orattributes e.g. LG Flatron, Fair & Lovely-Multivitamin, Godrej Pentacool

Positioning by distinct benefits to users Providing specific benefits or problem

solutions e.g. Vicks Vaporub

Positioning by specific kind of uses orusages

A finer ramification of benefits is to position theproducts on specific usages e.g. Dabur Honey,Roohafza 3


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Positioning Strategies

Positioning by Price/Quality

When the basic plank of positioning the product isits attractive pricing strategy e.g. Chota Coke,

Maggi (Rs 5) or Wheel

Positioning by Lifestyle of users

In case of items of conspicuous consumption,Positioning by lifestyle is a popular method e.g.Louis Phillipe (The upper crest), Wills (Made for

each other),Four Square King (Live Life King Size)Positioning by reference groups

Using celebrities for influencing customers to buyproduct or service e.g. Shahrukh Khan (Santro)

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Differentiation Strategies

Product features as differentiating strategy

Companies can create additional versions byadding extra features or can offer new features tohighlight its superiority over its competitors e.g. LG

Golden Eye, Whirlpool Agitator system

Performance quality as a differentiating strategy

Basic performance refers to the levels at which the

products primary characteristics operate.Differentiating on the basis of quality ofperformance even enables corporates to charge apremium price e.g. Bajaj Pulsar

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Exclusivity and style as a differentiating

strategy Style has the advantage of creating product

distinctiveness which is difficult to copy e.g.Nakshatra Jwellery, TAG Heuer watch

Product Range and variety as a differentiatingstrategy

Despite a number of players existing in the sameproduct category, the marketer can differentiate hisproducts on the basis of product range and varietyoffered : Flavors of Rasna, Lux variants, Ray Ban

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Service quality as a differentiating strategy

In addition to product features marketers can alsodifferentiate on the basis of accompanying services

and can capitalize on them e.g. Modi Xerox,Samsung etc.

Packaging as a differentiating strategy

Well designed packages can create an image of

convenience or quality for the consumer andpromotional value for the producer e.g. Maggi Rs 5,Clinic Plus(Re 1 Sachets)

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Brand Positioning

Brand position is the part of the brand identity and

value proposition that is to be actively communicatedto the target audience and that demonstrates anadvantage over the competing brands

BrandPosition

TargetAudience

-Create Advantage

-Points ofsuperiority

-Points of parity

-Activelycommunicate

-Augment the image

-Reinforce the image-Diffuse the image

-Subset ofidentity

-Core identity

-Points of

leverage overother brands

-Key benefits

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The Ws of Brand Positioning

CadburysPerk

Against whom:Other Snacks(Nestle Kitkat)

For Whom:Young, 20-30 yrs

M or F

When: Any time(Kabhi bhi)

Where:Any where(Kahin bhi)

Why: To satisfyin between

meals hunger

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The Ws of Brand Positioning

CadburysDairy Milk

Against whom:No competitivereference

For Whom: Ageno bar

Old, Adults,Young adults,

Children

When: Any timeWhere: Any place

(during movies, ondining table)

Why: To eat asdessert (after

meals)

(Kuch meetha hojaye)

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Positioning a brand means emphasizing the distinctive

characteristics that make it different from its competitors

and appealing to the public.

It results from an analytical process based on the four

following questions: A brand for what benefit? This refers to the brand

promise and consumer benefit aspect: Real Juice has

real fruit juice, and Maruti is reliable.

A brand for whom? This refers to the target aspect.

Pepsi for young (Yeh hai Youngistan!).

Brand Identity and Positioning


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Reason? This refers to the elements, factual or

subjective, that support the claimed benefit.

A brand against whom? In todays competitive

context, this question defines the main competitor(s),

i.e. those whose clientele we think we can snatch. Positioning concept reminds us that all consumer choices

are made on the basis of comparison.

Thus, a product will only be considered if it is clearly part

of a selection process. Hence the four questions that help

position the new product or brand and make its

contribution immediately obvious to the customer.

Brand Identity and Positioning


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Positioning a brand


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Positioning is a two-stage process:

First, indicate to what competitive set the brand

should be associated and compared.

Second, indicate what the brands essential difference

and raison dtre is in comparison to the otherproducts and brands of that set.

Choosing the competitive set is essential. While this may

be quite easy to do for a new toothpaste, it is not so for

very original and unique products because no worthy

reference is available.

Brand Positioning


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A brands positioning is a key concept in its

management. It is based on one fundamental

principle: all choices are comparative.

Remember that identity expresses the brands

tangible and intangible characteristics everythingthat makes the brand what it is, and without which it

would be something different.

Identity draws upon the brands roots and heritage everything that gives it its unique authority and

legitimacy within a realm of precise values and

benefits.

Why Brands need Identity and Positioning


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Positioning is competitive: when it comes to brands,

customers make a choice, but with products, they make a

comparison.

This raises two questions.

First, what do they compare it with? For this, we need tolook at the field of competition: what area do we want to

be considered as part of?

Second, what are we offering the customer as a key

decision-making factor?

A brand that does not position itself leaves these two

questions unanswered and it is a mistake.



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Products increase customer choice; brands simplify it.

This is why a brand that does not want to stand for

something, stands for nothing.

The aim of positioning is to identify, and take possession

of, a strong purchasing rationale that gives us a real orperceived advantage. It implies a desire to take up a long-

term position and defend it.

Brand identity is more stable and long-lasting, for it is tied

to the brand roots and fixed parameters.



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How is positioning achieved? The standardpositioning formula is as follows:

For (definition of target market)

Brand X is (definition of frame ofreference andsubjective category)

Which gives the most (promise or consumer

benefit) Because of (reason to believe)

Brand Positioning


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The target specifies the nature and psychologicalor sociological profile of the individuals to be

influenced, that is, buyers or potential

consumers.

The frame of reference is the subjective definition

of the category, which will specify the nature of

the competition. What other brands or products

effectively serve the same purpose? This is astrategic decision: it marks out the field of

battle.

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The third point specifies the aspect of difference

which creates the preference and the choice of a

decisive competitive advantage: it may be expressed

in terms of a promise (for instance, Volvo is the

strongest of all cars) or a benefit (such as, Volvo isthe safety brand).

The fourth point reinforces the promise or benefit,

and is known as the reason to believe. For example,

in the case of the Dove brand, which promises to be

the most moisturizing, the reason is that all of its

products contain 25 per cent of moisturizing cream.

Brand Positioning


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In marketing, perception is reality.

Positioning is a concept which starts with

customers, by putting ourselves in their place:

faced with a plethora of brands, are consumers

able to identify the strong point of each, the

factor that distinguishes it from the rest?

This is why, ideally, a customer should be capable

of paraphrasing a brands positioning: Only

Brand X will do this for me, because it has, or it is

Brand Positioning


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The tool called brand platform will comprise, first, the

brand identity, that is to say, brand uniqueness and

singularity throughout the world and whatever the

product.

Brand identity has six facets, and is therefore larger thanthe mere positioning. It is represented by the identity

prism. At its centre one finds the brand essence, the

central value it symbolises.

Second, the brand platform comprises brandpositioning: choosing a market means choosing a

specific angle to attack it. Brand positioning must be

based on a customer insight relevant to this market.

Brand Positioning


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Marlboro presents its smoker as a man a real man,

symbolised by the untamed cowboy of the Wild West.No support is offered for this proposition; no proof is

necessary. It is true because the brand says so. And the

more often it is repeated, the more credible it becomes.

Brand Positioning


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In this way the brands proposition, which forms the basis

of the chosen positioning at a given moment in a

particular market, may be fuelled by various edges

contained within the brands identity:

a differentiating attribute (25 per cent moisturizingcream in Dove);

an objective benefit: an iMac is user-friendly, Dell offers

unbeatable value for money;

a subjective benefit: you feel secure with IBM;

an aspect of the brands personality: the mystery of the

Bacardi bat;

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The realm of the imaginary, of imagery

and meaning (the American Wild West for

Marlboro, Old New England for Ralph

Lauren);a reflection of a consumer type: successful

people for Honda City;

deep values (Nikes sports mentality,Nestls maternal love)

Brand Positioning


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What is the connection between identity,essence and positioning?

Clearly, for existing brands, positioning

derives from identity.

But it exploits a specific aspect of identity at

a given point in time in a given market andagainst a precise set of competitors.

Brand Positioning


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It is this degree of freedom between identity, essence

and positioning that enables a brand to change over

time while still remaining itself.

What is the connection between the positioning of the

brand and the positioning of its products? It is true that todays brands are increasingly based on

multiple products.

Dove was born as a soap in the United States, but now

encompasses shampoos, shower gels, moisturising

cream, deodorants and so on.

Brand Positioning


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The essence of Dove is Femininity restored. But Dove is

being launched in a market via one or more productsthat have to fight for their own space amid a host of

competitors

Hence when Dove soap was launched, its positioningwas: Dove is a premium beauty bar for the mature

women, worried about their skin, which wont dry your

skin like soap because it contains one quarter

moisturising cream.

Brand Positioning


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When a brand consists of multiple products, care should

be taken to ensure that their respective positioningconverges on attaining the same core value (that of the

parent brand).

Brand Positioning


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Brand Positioning

Is at the heart of the marketing strategy

. . . the act of designing the companys offer

and image so that it occupies a distinct andvalued place in the target customers minds.

Philip Kotler

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Determining a frame of reference

What are the ideal points-of-parity and points-

of-difference brand associations vis--vis the

competition?

Marketers need to know:

Who the target consumer is

Who the main competitors are

How the brand is similar to these competitors

How the brand is different from them

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Target Market

A marketis the set of all actual and potentialbuyers who have sufficient interest in, incomefor, and access to a product.

Market segmentation divides the market intodistinct groups of homogeneous consumerswho have similar needs and consumerbehavior, and who thus require similarmarketing mixes.

Market segmentation requires makingtradeoffs between costs and benefits.

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Example of the toothpaste market

Four main segments:

1. Sensory: Seeking flavor and product appearance

2. Sociables: Seeking brightness of teeth

3. Worriers: Seeking decay prevention

4. Independent: Seeking low price

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Criteria for Segmentation

Identifiability: Can we easily identify the

segment?

Size: Is there adequate sales potential in the

segment?

Accessibility: Are specialized distribution outlets

and communication media available to reach the

segment? Responsiveness: How favorably will the segment

respond to a tailored marketing program?

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Nature of Competition

Deciding to target a certain type of consumer

often defines the nature of competition

Do not define competition too narrowly

Ex: a luxury good with a strong hedonic benefit

like stereo equipment may compete as much with

a vacation as with other durable goods like

furniture

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Points-of-Parity

and Points-of-Difference

Points-of-difference (PODs) are attributes or

benefits that consumers strongly associate

with a brand, positively evaluate, and believe

that they could not find to the same extentwith a competitive brand.

Points-of-parity associations (POPs), on the

other hand, are not necessarily unique to thebrand but may in fact be shared with other

brands.

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Brand Positioning Guidelines

Two key issues in arriving at the optimalcompetitive brand positioning are:

Defining and communicating the competitive frame

of reference

Choosing and establishing points-of-parity and

points-of-difference

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Defining and Communicating the

Competitive Frame of Reference

Defining a competitive frame of reference for

a brand positioning is to determine category

membership.

The preferred approach to positioning is to

inform consumers of a brands membership

before stating its point of difference in

relationship to other category members.

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Choosing POPs & PODs

Desirability criteria (consumer perspective)

Personally relevant

Distinctive and superior

Believable and credible

Deliverability criteria (firm perspective)

Feasible

Profitable

Pre-emptive, defensible, and difficult to attack

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Attribute and Benefit Trade-offs

Price and quality Convenience and quality

Taste and low calories

Efficacy and mildness

Power and safety

Ubiquity and prestige

Comprehensiveness (variety) and simplicity

Strength and refinement

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Strategies to Reconcile

Attribute and Benefit Trade-offs

Establish separate marketing programs

Leverage secondary association (e.g., co-brand)

Re-define the relationship from negative topositive

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Core Brand Values

Set of abstract concepts or phrases that

characterize the five to ten most important

dimensions of the mental map of a brand

Relate to points-of-parity and points-of-

difference

Mental map Core brand values Brand mantra

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Brand Mantras

An articulation of the heart and soul of thebrand

similar to brand essence or core brand

promise Short three- to five-word phrases that capture

the irrefutable essence or spirit of the brandpositioning and brand values

Considerations Communicate

Simplify

Inspire 3.45


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Designing the Brand Mantra

The term brand functions describes the nature

of the product or service or the type of

experiences or benefits the brand provides.

The descriptive modifierfurther clarifies its

nature.

The emotional modifierprovides another

qualifier

how exactly does the brand providebenefits, and in what way?

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Designing the Brand Mantra

Emotional

Modifier

Descriptive

Modifier

Brand

Functions

Nike Authentic Athletic Performance

Disney Fun FamilyEntertainment

Fun Folks Food

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Brand Audit

Externally, consumer-focused assessement

A comprehensive examination of a brand

involving activities to assess the health of the

brand, uncover its sources of equity, and

suggest ways to improve and leverage that

equity

It includes brand vision, mission, promise,

values, position, personality, and performance

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Importance of Brand Audits

Understand sources of brand equity

Firm perspective

Consumer perspective

Set strategic direction for the brand

Recommend marketing programs to maximize

long-term brand equity

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Brand Audit Steps

Brand inventory (supply side)

Brand exploratory (demand side)

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Brand Inventory (Cont.)

Suggests the bases for positioning the brand Offers insights to how brand equity may be

better managed

Assesses consistencyin message amongactivities, brand extensions, and sub-brands in

order to avoid redundancies, overlaps, and

consumer confusion

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Suggested Brand Audit Outline

Brand audit objectives, scope, and approach Background about the brand (self-analysis)

Background about the industries

Consumer analysis (trends, motivation, perceptions,needs, segmentation, behavior)

Brand inventory

Elements, current marketing programs, POPs, PODs

Branding strategies (extensions, sub-brands, etc.)

Brand portfolio analysis

Competitors brand inventory

Strengths and weaknesses 3.55


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Brand Audit Outline (Cont.)

Brand exploratory Brand associations Brand positioning analysis

Consumer perceptions analysis (vs. competition)

Summary of competitor analysis

SWOT analysis

Brand equity evaluation

Strategic brand management recommendations

1 brand positioning

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